UPDATE: Since the October 2015 publication of our Best Global Brands Report, Philips’ brand value has been adjusted to 10,933 $m, based on the analysis of new information that affects long-term profitability predictions for the brand. — February 19th, 2016.
Philips CEO Frans van Houten understands that transformation takes discipline and dedication. Since stepping into the top job in 2011, van Houten has concentrated on making the company more nimble and more focused.
In the last few years, Philips has continued to actively reshape and consolidate its vast portfolio. Despite a series of divestitures, van Houten believes continued streamlining is in order, after a century of diversification that broadened its offerings. This strategy is part of its 5-year Accelerate! program and focuses on key areas: making healthcare more affordable and accessible, improving health and well being through consumer appliances, and making the world more sustainable through lighting solutions.
The resulting launch of buzz-worthy products has made the 124-year-old Dutch electronics giant appear more energized and innovative to its global audience. At the 2014 IFA in Berlin, it debuted new digital consumer innovations for connected devices, including air purifiers and baby monitors, and smart apps for everything from shaving advice to managing chronic pain in order to support a more active lifestyle.
Philips continues to invest in “Innovation and You,” a platform that highlights how innovation can always find a way to make life better—setting an ambitious goal to improve the lives of 3 billion people per year by 2025. Thus, it’s focusing on defining and actively sharing just how great an impact it has in the world. That includes creating a “Methodology to measure Lives Improved,” using market intelligence and statistical data. This innovation focus is also central to the brand’s content and storytelling initiatives. For example, in a recent partnership with The Telegraph in the U.K., it created an interactive hub for its integrated marketing campaign, “100 days of life changing innovations.” The Telegraph published 100 original stories in 100 days that tell individual tales of life-changing innovation, some submitted by leading celebrities and journalists.
Philips understands that keeping up with significant macro trends such as an aging population, the importance of sustainable practices, and a transition to a circular economy may require a “systems-level shift.” With that knowledge, Philips’ commitment to make life better means as much for the brand as it does for the world.